Random Thoughts: Positioning into Google
The Internet giant reports earnings tonight.
Driving Miss Daisy! - 1:20 pm
Minyans know there are four primary metrics that move markets:
- Structural influences
At different junctures, these metrics shift on the trading totem pole in terms of importance and influence.
During the last month, structural worries have dominated the market, psychology turned sour, technicals broke down and the fundamentals didn't matter.
As we work off the oversold condition, the markets will stop moving monolithically.
In other words, "throwing a dart" at a sector-such as the banks-won't work.
Earnings will begin to "matter" again on an individual basis rather than for the sector as a whole.
Psychology remains key-if this rally can hold, the mindset will shift from fear to greed (performance anxiety).
I am, so you know, feeding some ducks, particularly in Wachovia, which I bought into the teeth of the figurative and literal raid today.
Remember, jump, test, run, rest... trade accordingly.
Dude! - 1:42 pm
Keep close tabs on crude $130 Minyans.
We spoke about the stair-step yesterday--wait, was that yesterday? It seems this week has been one, long day! Either way, while I think Texas Tea drips lower, I'm taking my trade in the USO puts, which was slapped on around crude $145. If a fool and his money...
As an aside--and in the interest of bringing our discussion full circle--I'm gonna humbly slip that other leg out of the bull costume. I got dressed--or woulda, if I did that--at 10:59 AM Tuesday and 460 DJIA points in two sessions satisfies the imagery.
Especially if the jump, test, run, rest unfolds!
I need food, stat!
Like a sat on hat! - 2:34 pm
My goodness, are we having fun yet?
I'm jammier than a Smucker's factory but I wanted to alert Minyans that, outside of a small Lowe's (LOW) call position and my lottery ticket Gannett (GCI) calls, I'm flat in my short-term trading account.
And yes, that includes Wachovia (WB), which I battled down to a hat-size. It wasn't fun or easy, but now it's over. Oy.
I have, so you know, taken a small portion of the gains from the bull costume profits and bought an odd-lot of Google (GOOG) puts.
Why? Two reasons. First, that frisky, downside gap and two, it acts like poo in a very green sea. I know we're not supposed to flip coins but it's a small schnitzel with defined risk.
Fare ye well into the bell, Minyans, and beware of the rest (as it jump, test, run, rest).
GET THESE INSIGHTS AND MUCH MORE IN REAL-TIME EVERY TRADING DAY WITH A FREE TRIAL TO BUZZ & BANTER
Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at email@example.com.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter